Sajjan Jindal, chairman and family owner of Indian steelmaker JSW, said JSW plans to launch its own electric car brand, marking the company’s entry into India’s growing electric car industry.
Before announcing plans to launch an electric car brand, JSW announced in March this year a $1.5 billion joint venture with SAIC Motor to produce and sell MG-branded electric cars in the Indian market.
In an interview, Jindal said that JSW plans to build an automobile plant in Aurangabad, Maharashtra, western India, which will exclusively produce its own brand of cars. This is also the first time that the company has revealed its goal of producing cars under its own brand.
Jindal told the media: “Our idea is not to be an outpost for Chinese companies to sell products in India. We want to make products in India, add value in India, and sell in India.”
By launching its own brand, JSW will join the ranks of Indian electric car manufacturers and become a competitor to companies such as Tata Motors, Mahindra and Ola Electric.
Jindal did not disclose more plans for the group in terms of investment amount or specific models. However, in October, the Aurangabad Industrial Park in Maharashtra welcomed JSW on the X platform, saying the company would invest 272 billion Indian rupees (about $3.2 billion) to produce electric and commercial vehicles and create 5,200 jobs.
Sales of electric two-wheelers in India have surged in recent years, helped by subsidies, but demand for full-size electric vehicles has been slow to develop.
This is in stark contrast to China, where government subsidies and incentives for manufacturers and buyers have promoted mass adoption of electric vehicles.
Electric vehicle sales in India are about 100,000 units a year, accounting for 2% of the passenger car market, but sales have begun to grow among wealthier Indians, according to S&P Global Mobility.